logo
. . .

Project Office

A "Project Office" (PO) is an establishment where a foreign company conducting a project in India can conduct business. A company only wants to be present in India for a short while, setting up a project office is the best option.

0

Satisfied Customers

0

Global Business Setups

0

Professionals (CA,CS, Lawyers)

0

Offices

[ Rated 4.9 Stars By 7863+ Customers Globally]
Slider One

Post Incorporation Compliance

Filing Annual Activity Certificate:-

A specific provision regarding the submission of AAC by PO has been included to Regulation 2016. The selected AD Category -I Bank must get the Annual Activity Certificate (AAC) in Form FNC (Annex D) by the following deadlines:

  • In the case of a single PO, by the relevant PO.
  • If there are numerous POs, the nodal office of the POs will conduct a combined AAC for all of the offices in India.

This AAC must be received from a chartered accountant and demonstrates the project's status while attesting that the project office's accounts have undergone an audit and that the actions carried out comply with the general or specific authorization granted by the Reserve Bank.

Introduction

A "Project Office" (PO) is an establishment where a foreign company conducting a project in India can conduct business.  A company only wants to be present in India for a short while, setting up a project office is the best option. It is essentially a branch office created just for the purpose of carrying out a certain project.

The RBI permits a parent business based in another country to register a project office in India to represent the parent firm's interests when executing projects in India. To execute a project in India, the parent business must have a contractual agreement. Any Indian government or private sector organization may award the project to a foreign company.

Additionally, the project office is only permitted to carry out tasks that fall under the parameters of the project as established by the Indian parent company. The project's scope also covers incidental and related duties.

The project office registration process is carried out in accordance with the rules outlined in Section 6(6) of the Foreign Exchange Management Act 1999. The Reserve Bank of India has the ability to authorize the establishment of a project office in India by a foreign corporation.

A foreign company's project office in India may be approved by the Reserve Bank of India. However, the foreign company must first sign a contract with an Indian company before opening a project office there.

If a foreign firm intends to open a project office in India, it is now required by RBI recommendations and the Companies Act of 2013 that it get a registration certificate from the Registrar of Companies (ROC). It must follow all procedural requirements when registering the project office.

Project Office Registration Requirements in India

  • It is essential for the foreign company to have a guaranteed project in India and to enter into a formal, legal agreement that will support the project's financial statements.
  • Verify if the project has received the necessary and recognized authorities' approval.
  • Verify in order to determine if the project will be financially supported by remittances coming in from the foreign nation; if not, an international financing agency will need to sponsor it.
  • If there is no foreign investment, it is the Indian entity's responsibility to secure the term loan from an Indian bank or public financial institution.

Registration Procedure

  • STEP - 01:- Document legalization:- 

Foreign company's documentation must be filed with the RBI. A certificate of formation, the MOA and AOA of the foreign firm, and board resolutions are among the documents on the list. Additionally, be sure to apostil all documents signed by a foreign entity's authorized representative using the Hague Convention or the Indian Embassy.

  • STEP - 02:- Application Submission Through AD Bank to RBI:-

An FNC application is submitted for the parent office of a foreign corporation. The Authorised Dealer (AD Bank) submits the application to the Reserve Bank of India. The AD bank plays a crucial function because all communication to the RBI is routed through them.

  • STEP – 03:- KYC confirmation from the parent company's bank:-

The banker of the overseas company receives a request for the review of documents. Sending a request for verification is sometimes known as "swift-based verification." Once the foreign banker has checked the papers, the application is ready for approval. The RBI/AD may additionally seek the other paperwork depending on the circumstances.

  • STEP – 04:- RBI Approval for Project Office Registration in India:-

The next step after incorporation is to open a company bank account, where foreign direct investment must arrive within 180 days of the firm's formation with advance notification to the banker.

  • STEP – 05:- Registration of a Foreign Company's Project Office with the ROC:-

Within 30 days of receiving RBI permission for the creation of the project office in India, the foreign company files an application for project office registration. If there are any Indian directors, a DIN is required, and the authorised signatory's digital signature is required for e-filing statutory forms with the ROC.

  • STEP – 06:- PAN Card, Tax Deduction Number, And Bank Account Opening:-

India's income tax office generates a special PAN number with ten digits. The branch office is qualified to open a bank account once the PAN number has been acquired. Additionally, in order to adhere to all TDS regulations, every taxpayer must get a Tax Deduction Account Number.

 

  • STEP – 07:- Other Licences And Registration:-

As soon as the Project Office enters an inactive state, various compliance-related actions that depend on the business sector and the state-specific rules that apply to all entities engaging in commercial activities take place. the Professional Tax Act, Provident Funds Act, and Employee State Insurance Act (ESIC), to name a few.

Documents Provided to the ROC

  • RBI approval for opening a project office in India
  • Foreign Company's MOA and AOA
  • Copies of COI that have been notarized
  • A notarized copy of a power of attorney naming the Indian resident and designating him as the person responsible for accepting any notices or documents on the company's behalf
  • A complete list of the company's directors
  • Complete KYC of shareholders owning more than 10% of the applicant company's equity is required.
    Timeframe for Opening Project Office
  • The office must be operational within six months after the approval letter's date.
  • When a person residing outside of India has circumstances beyond their control, an AD Category-I bank may offer a 6-month extension.
  • Only RBI has the authority to give additional extensions.
  • The average time to register a PO is 15 days.
  • STAGE 1

    CONNECT WITH US

    We are just a call or message away!

    Call or WhatsApp us on +91-99991-39391 for free consultation from our team of experts. You can also email us on [email protected].

  • STAGE 2

    PROCESS AND DOCUMENTATION

    Your consent is essential!

    We share the detailed and reasonable estimated costs, documents and prerequisites for the complete process before starting the process to ensure transparency.

  • STAGE 3

    SHARE YOUR DOCUMENTS

    We ensure timelines are met!

    Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.

  • STAGE 4

    PROCESSING AND UPDATE

    Precision is our speciality!

    Upon collecting the necessary documents and information, we waste no time in preparation and filing of your application. development on your application is brought to your attention.

  • STAGE 5

    SUCCESSFUL COMPLETION

    We deliver what we commit!

    On successful completion of the case we share all the relevant documents electronically and physically along with an assurance to pay you back if something is wrong.

Request A Callback
Related Services

Expert Legal Advisory Our Customers Love

Bespoke advisory focused on mission critical legal, financial and business aspects.

server room

Trusted By Clients And Industry Experts

At Corpzo, our clients’ success stories speak volumes. Discover how businesses across various industries have leveraged our expertise to achieve their goals. Read firsthand accounts of our commitment to excellence and the impact we've made in supporting their growth and compliance needs.

Empowering You with Expert Insights and Knowledge

At Corpzo, we are dedicated to empowering our clients with valuable knowledge and insights. Our team of experts regularly shares in-depth articles, comprehensive guides, and industry updates on Knowledge Varsity. Whether you're looking for the latest trends in alternative investment funds or need expert advice on navigating the complexities of drug licensing, our resources are designed to keep you informed and ahead of the curve. We believe that informed clients make better decisions, and our goal is to provide you with the expertise you need to succeed.

Explore CorpZo Insights
Let’s chat? - We're online
Corpzo Chat Now Corpzo Chat Image
Book An Appointent

Shabnam

From Mumbai Recently Purchased @Partnership Firm Registration